Employers need to change the way they think about wages

Governor of the Reserve Bank, Philip Lowe.

Readers all generally agreed on the problems of wage stagnation yesterday, but Guy Rundle’s piece on the Voice to Parliament caused some fierce debate in the comments section. You can join in here.

On wage stagnation dragging down the economy

Sleuth writes: The problem with wage growth is that most employers, along with right wing governments, only see wages as a cost, much like materials and power charges. The fact that wage and salary earners are the backbone of any enterprises, does not come into their thinking. Employees enable businesses to lift profits, however if their morale drops too low, due to insufficient reward, everyone loses.

Dog’s breakfast writes: While Lowe and the RBA seem to get it, I really don’t think they do. They haven’t quite worked out how much things have changed. Wage inflation below CPI is a disaster. Loss of union power and high immigration to subvert natural demand is a big problem. High profits and low wage growth is just greed.

We are no closer to a solution now than 20 years ago when Howard set off a growth by way of credit trend of rampant stupidity. Fark these classical economists. They know everything about nothing.

On a Voice to Parliament

Caroline Armstrong writes: After I listened to a lot of the livestream with Professor Megan Davis. Very strange to then read the “IDGI” piece by Guy Rundle. The authors are explaining it across the country. Here it is. Let’s all listen and learn the history of the Uluru Statement. 

Hunt Ian writes: I do get it, Guy. The proposal is for a VOICE to parliament, in circumstances where most Aboriginal people have been treated as outcasts in their own land. All the legislative stuff is beside the point.

It is true that most Australians have little voice. The loudest, most far reaching voice in Australia is that of the US citizen, Rupert Murdoch. Somehow, the legislation against foreign influence will ignore him. Some Australian citizens have a little say through Fairfax, local papers, Crikey and The Guardian and also on broadcast media. Many with a voice on broadcast media say little on anything of importance. On the other hand, the ABC and SBS give some voice to Australians on matters of importance (e.g. The Drum, Q&A) and also give some voice to descendants of our First Peoples.

While Australian democracy is pretty hollow for most Australians, it has until recently been completely hollow for our First Peoples. The voice to parliament will give them a significant voice for the first time. In the distant future, when all Australians have an equal say in our laws and policies, there will be no need for an Aboriginal voice to parliament and people like that US citizen, Rupert Murdoch, will not have a disproportionate influence over what we think.

In the meantime, I do get it.

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